Net Sales and Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Net Sales and Revenue Recognition

Net Sales and Revenue Recognition

Arrangements Resulting in Net Reporting

As part of the Company’s FluidcareTM business, certain third-party product sales to customers are managed by the Company. The Company transferred third-party products under arrangements recognized on a net reporting basis of $21.6 million and $63.2 million for the three and nine months ended September 30, 2023, respectively, and $21.4 million and $61.7 million for the three and nine months ended September 30, 2022, respectively.

Customer Concentration

A significant portion of the Company’s revenues are realized from the sale of process fluids and services to manufacturers of steel, aluminum, automobiles, aerospace, industrial and agricultural equipment, and durable goods. As previously disclosed in the Company’s 2022 Form 10-K, the Company’s five largest customers combined (each composed of multiple subsidiaries or divisions with semiautonomous purchasing authority) accounted for approximately 11% of consolidated net sales, with its largest customer accounting for approximately 3% of consolidated net sales.

Contract Assets and Liabilities

The Company had no material contract assets recorded on its Condensed Consolidated Balance Sheets as of September 30, 2023 or December 31, 2022.

The Company had approximately $2.8 million and $5.7 million of deferred revenue as of September 30, 2023 and December 31, 2022, respectively. For the nine months ended September 30, 2023, the Company satisfied all of the associated performance obligations and recognized into revenue the advance payments received and recorded as of December 31, 2022.

Disaggregated Revenue

The Company sells its various industrial process fluids, its specialty chemicals and its technical expertise as a global product portfolio. The Company generally manages and evaluates its performance by reportable segment first, and then by customer industries. Net sales of each of the Company’s major product lines are generally spread throughout all three of the Company’s geographic regions, and in most cases, are approximately proportionate to the level of total sales in each region.

The following tables disaggregate the Company’s net sales by geographic region, customer industries, and timing of revenue recognized. Prior period information has been recast to reflect the Company’s current period customer industry disaggregation. See Note 1 of Notes to Condensed Consolidated Financial Statements.

	Three Months Ended September 30, 2023
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	67,957	$	32,630	$	49,320	$	149,907
Metalworking and other	177,942		106,990		55,773		340,705
	$	245,899	$	139,620	$	105,093	$	490,612
Timing of Revenue Recognized
Product sales at a point in time	$	235,209	$	128,586	$	102,305	$	466,100
Services transferred over time	10,690		11,034		2,788		24,512
	$	245,899	$	139,620	$	105,093	$	490,612

	Nine Months Ended September 30, 2023
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	204,834	$	104,376	$	144,109	$	453,319
Metalworking and other	545,697		331,226		155,962		1,032,885
	$	750,531	$	435,602	$	300,071	$	1,486,204
Timing of Revenue Recognized
Product sales at a point in time	$	718,187	$	402,508	$	291,740	$	1,412,435
Services transferred over time	32,344		33,094		8,331		73,769
	$	750,531	$	435,602	$	300,071	$	1,486,204

	Three Months Ended September 30, 2022
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	67,943	$	32,748	$	51,341	$	152,032
Metalworking and other	186,735		101,638		51,813		340,186
	$	254,678	$	134,386	$	103,154	$	492,218
Timing of Revenue Recognized
Product sales at a point in time	$	243,699	$	124,566	$	99,929	$	468,194
Services transferred over time	10,979		9,820		3,225		24,024
	$	254,678	$	134,386	$	103,154	$	492,218

	Nine Months Ended September 30, 2022
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	185,784	$	107,163	$	163,239	$	456,186
Metalworking and other	516,796		319,576		166,219		1,002,591
	$	702,580	$	426,739	$	329,458	$	1,458,777
Timing of Revenue Recognized
Product sales at a point in time	$	669,945	$	396,944	$	321,031	$	1,387,920
Services transferred over time	32,635		29,795		8,427		70,857
	$	702,580	$	426,739	$	329,458	$	1,458,777